Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

August 12, 2011 18:07 ET

Condor Announces Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 12, 2011) - Condor Petroleum Inc. ("Condor" or the "Corporation") (TSX:CPI) is pleased to announce the release of its unaudited Interim Financial Statements for the three and six months ended June 30, 2011, together with the related Management's Discussion and Analysis ("MD&A"). These documents will be made available under Condor's profile on SEDAR at www.sedar.com and on the Condor website at www.condorpetroleum.com. All financial amounts in this press release are presented in Canadian dollars. The unaudited Interim Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Further details on Condor's conversion to IFRS are provided in the Financial Statements and MD&A.

Second quarter and recent highlights include:

On April 12, 2011, the Corporation completed an initial public offering of 57,142,857 shares at a price of $1.40 per share for gross proceeds of $80.0 million, and the Corporation's shares commenced trading on the Toronto Stock Exchange under the symbol CPI. On May 12, 2011, the over-allotment option granted to the syndicate of agents who participated in the initial public offering was partially exercised and an additional 5,445,563 shares were issued at a price of $1.40 per share for gross proceeds of approximately $7.6 million.

The 2011 Zharkamys post-canopy exploration drilling program commenced in March 2011 and six wells have been drilled to date. Four of these wells encountered hydrocarbon pay intervals and three tested hydrocarbons during initial production testing, with the fourth well, Eibety-1, awaiting testing. The discovery pay intervals and associated initial flow rates (over 2 days) are presented below. All net pay calculations were based on wire-line logs and determined using industry-standard petrophysical analysis.

Well Net Oil Pay (meters ) Net Gas Pay (meters ) Initial Stable Flow
(barrels per day
)
Shoba-1 19 5 210
Shoba-2 15 24 530
Shoba-3 18 16 310
Eibety-1 8 - Not yet tested

Regulatory approval for a 90 day production test on the Shoba-1 well has been obtained and production testing is scheduled to start in August 2011. The regulatory approvals necessary for the commencement of 90 day production tests on the Shoba-2 and Shoba-3 wells are expected to be obtained by Condor in the third quarter of 2011.

Exploration activities are continuing with the drilling rig moving to the next well, Eibety-5, a separate structure located 2 km northeast of Eibety-1.

There is no certainty that any of the hydrocarbons will be recovered. Hydrocarbon recovery is subject to all of the risks associated with oil and gas operations, both domestic and international, as discussed in greater detail in Condor's Management's Discussion and Analysis for the three and six months ended June 30, 2011 and in Condor's prospectus dated March 31, 2011.

Selected information

For the three months ended June 30 2011 2010
Gross petroleum and natural gas sales 866,387 804,717
Net loss attributable to Condor Petroleum Inc. (1,780,200 ) (2,995,238 )
Net loss per share - basic and diluted (0.01 ) (0.02 )
Capital expenditures 11,487,264 1,939,050
As at June 30, 2011 December 31, 2010
Total assets, end of period 204,326,781 129,775,751
Working capital, end of period 105,840,931 42,333,310

About Condor Petroleum Inc.

Condor is a junior oil and natural gas corporation engaged in the exploration for, and the acquisition, development and production of oil and natural gas resources in Kazakhstan and Canada. Condor (through its wholly‐owned subsidiary, Falcon Oil & Gas Ltd. LLP) holds a 100% interest in the oil and natural gas exploration rights to the 2,610 km2 Zharkamys West 1 Contract Territory, located in Kazakhstan's Pre‐Caspian basin. For further information see Condor's prospectus, dated March 31, 2011, a copy of which is available under Condor's SEDAR profile at www.sedar.com.

Forward‐Looking Statements

Certain statements in this news release constitute forward‐looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate'', "believe'', "intend", "expect", "plan", "estimate", "budget'', "outlook'', "may", "will", "should", "could", "would" or other similar wording. Forward-looking information in this news release includes, but is not limited to, information concerning drilling results, the timing of planned well testing and drilling operations, the Corporation's receipt of regulatory approvals and the timing associated therewith, the timing and ability of the Corporation to mature future drill targets and prospects and the filing of the Financial Statements and MD&A. Forward‐looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors and assumptions include, but are not limited to: the results of exploration and development drilling and related activities; imprecision of reserves and resources estimates, ultimate recovery of reserves, prices of oil and natural gas; general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and natural gas prices; the ability to produce and transport crude oil and natural gas to markets; the effects of weather and climate conditions; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Condor. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Condor with Canadian securities regulatory authorities.

Readers are cautioned that the foregoing list of important factors affecting forward‐looking information is not exhaustive. Furthermore, the forward‐looking information contained in this news release is made as of the date of this news release and, except as required by applicable law, Condor does not undertake any obligation to update publicly or to revise any of the included forward‐looking information, whether as a result of new information, future events or otherwise. The forward‐looking information contained in this news release is expressly qualified by this cautionary statement.

Contact Information

  • Condor Petroleum Inc.
    Don Streu
    President & Chief Executive Officer
    (403) 201-9694

    Condor Petroleum Inc.
    Sandy Quilty
    Vice President, Finance & Chief Financial Officer
    (403) 201-9694
    www.condorpetroleum.com